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Accounts of Partnership Firms-Fundamentals — Accountancy STD 12 — Question

Tamilnadu BoardEnglish MediumSTD 12AccountancyAccounts of Partnership Firms-Fundamentals2 Marks
Question
What is a Current Account?
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Answer

Under the fixed capital method, Capital Account and Current accounts are maintained. In current a/c all adjustments relating to partners are recorded on the credit side of the current account viz. Interest on capital, the share of profits, salary and commission etc., are recorded. On the debit side, drawings, interest on drawings, share of loss are recorded. Current accounts sometimes shows credit balance or debit balance.

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